A Study On Financing And Credit For SMEs Of China

SMEs (Small and Medium Enterprises), as the most active element in the economic development of a region and a country, play a significant role in national economy. Backing up the growth of SMEs is an important economic and management issue paid much attention to by every regional and national government. To greatly develop SMEs is an imperative choice of China, as a developing country under the process of establishing and perfecting its socialist market economy, and with huge regional development gaps and a massive population. In our practice of establishing socialist market economy, SMEs have demonstrated their prominent role in economic and social development. Therefore, it has become a critical historic topic to carefully analyze the problems in the growth of SMEs, to formulate adequate policies, and to promote rapid and healthy growth of SMEs.SMEs' growth involves issues like development and management of human resources, technology and innovation, marketing and R & D, and financing. These issues are constantly bothering the management of SMEs and are dragging behind their sound and rapid growth. Top on all the constraints is financing, which is a shared problem of SMEs in developed and developing countries, particularly of Chinese SMEs as they are growing through the transition of planned economy to market economy, the revolution of property right system, and the insufficiently fledged financial market. This text, based on learning the research results and the practices of advanced countries in financing their SMEs and combining the realities of Chinese SMEs, highlights the difficulties in SMEs financing, studies the reasons behind and attempts some solutions.